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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Elroy Jetson who wrote (251992)	6/5/2010 4:10:07 AM
From: Skeeter Bug	Read Replies (1) \| Respond to of 306849

>>The massive consumer and business debts, unsupportable by the incomes of those who owe it, don't get paid due to bankruptcies and foreclosures. That's plainly obvious.<< bankruptcy reform in 2005 doesn't make it so cut and dry anymore. they saw this coming, hence their reform to make bankruptcy A LOT more difficult. many people are now put on payment plans in ch 13. >>The government is on the hook for FDIC claims. The money created to replace the saver's Dollars will offset a small portion of the "money" which is vaporized, so an inflationary effect which means slightly lower price deflation. The government has never guaranteed Fannie Mae debt, and if we're smart will not - which would be very bad news for investors and pension funds and life insurance firms around the world.<< while not guaranteed in writing, it has been guaranteed verbally, for all intents and purposes. remember, the fed is gonna dump its trillions in MBS losses on fannie and freddie and can only really do that if the tax payers eat the sh*t pie. >>This way the pain is over in a few short years.<< i doubt it, but i do hope you are correct. >>The alternative is Japan, which has provided "stimulus" money for 20 years leaving them still in an economic depression with the largest government debt to income ratio in the world.<< japan did that in an environment that has to be 10x better than today's environment. we can't drag it out 20 years, imho. >>No nation has ever inflated their debts away, as interest rates rise in an anticipatory manner. So not only would an expansion of the monetary base not fix the problem, but it would wipe-out much of the wealth of the wealthy people who effectively control our government.<< unless they know it is coming and get into SDRs or some form of world currency (gold?). i do agree serious inflation is a problem for them as runs on banks would shut them down - and banks are important to these people. >>Which explains why the Fed has not increased the amount of Permanent Reserves for decades. All of the new "money" is offset by an equal amount of debt.<< or their master bankers told them not to do it.

To: Elroy Jetson who wrote (251992)	6/5/2010 7:46:23 AM
From: Bank Holding Company	Read Replies (1) \| Respond to of 306849

> No nation has ever inflated their debts away, as interest rates rise in an anticipatory manner. So not only would an expansion of the monetary base not fix the problem, but it would wipe-out much of the wealth of the wealthy people who effectively control our government. << So if Greece [insert other] defaults on its debt.....what is to stop EU allies from doing same?? Can a central bank go BK? Can a primary Dealer go BK? Lots of rhetorical questions, i guess....